\section{Smart Cities}
\label{sec:SmartCity}



In last few years the term `smart city' has become very popular among the policy makers, city leaders and practitioners. And the possible reason for the popularity is that the concept of smart city has been seen as a possible solution for the problems arising due to increased urbanization: 
\begin{quote}
\textit{``The increased urbanization puts pressure on the city infrastructure and service delivery and complicates environmental, economic and [Social] growth, while digital and pervasive technologies increasingly challenge notions of space, place and how we experience the city.''} \citep{MARTIN}
\end{quote}


\subsection{What is a smart city?}
\label{subsec:smartcity}

\noindent Before getting into the core discussion about the concept, characteristics, and challenges of smart cities it is important to elaborate on the definition of a smart city. Lots of smart city definitions have been proposed by different public and private organisations and most of these definitions are descriptive rather than being normative. Moreover, these definitions are mostly based on specific areas (technology, business, or environment) according to the convenience of its use. Some researchers define a smart city as a digital revolution promoting pervasive integration \citep[pp. 90--91]{DAMERI}, while others take a more social approach. \cite{ROBERT} describes this as a \textit{self-congratulatory} tendency due to lacking precision in the definitions. For our understanding we will follow some of the literature that comprise smart city definitions in broader context. \bigskip

\noindent \cite{NAM} define smart cities in a broader context where they conceptualize smart cities as a mix of three dimensions: technology, people, and institutions:

\begin{itemize}

\item \textit{The technology dimension can be clustered into six different definitions: the digital city, the intelligent city, the ubiquitous city, the wired city, the hybrid city, and the information city.}

\item \textit{The human dimension of people is described in four clusters: the creative city, the learning city, the humane city, and the knowledge city.}

\item \textit{The institution dimension has two different definitions: the smart community and smart growth.}

\end{itemize}

\noindent \cite{TOPPETA} defines a smart city as a city where technologies (such as Web 2.0) can be combined with organisational processes to improve sustainability and the livability of people. However, it is also important to understand that the concept of smart city is not only limited to technological advancement; social factors also play a central role. \cite{NAM} identify a necessity of a socio-technical view on smart cities. \cite{GIFFINGER1} provide a comparative definition of smart city by including various aspects of it. According to them, a city is smart when it is \textit{``[\ldots] well performing in a forward-looking way in [economy, people, governance, mobility, environment, and living], and built on the smart combination of endowments and activities of self-decisive, independent, and aware citizens''} \cite[p. 11]{GIFFINGER1}. 

Considering the socio-technical and future oriented aspects, \cite{SCHAFFERS2012} \textit{``call a city ``smart'' when ``investments'' in human and social capital and traditional (transportation) and modern (ICT-based) infrastructure fuel sustainable economic  growth and a high quality of life, with a wise management of natural resources, through participatory government''} . Such definitions are more relevant to take into consideration as they intend to create balance between economic and social factors along with the change in urbanization trends and \textit{``they also serve to open the definition potentially to encompass smaller and less developed cities which are not necessarily able to invest in the latest technology''} \citep[p. 22]{EU3}. 
\begin{wrapfigure}{r}{0.6\textwidth}
  \begin{center}
    \includegraphics[width=0.6\textwidth]{./Pictures/componentssmartcity}
    \end{center}
    \setlength{\belowcaptionskip}{-10pt}
    \caption{\textit{Fundamental components of smart city} \citep[p. 286]{NAM}}
    \label{fig:smartcitycomponents}
\end{wrapfigure}
\noindent Furthermore, Von Hippel argues that \textit{``to this, the \hbox{} notion of empowerment of citize\-ns and ``democratizing innovation'' should be added''} \citep{SCHAFFERS2012}. \hbox{} Despite of all these subjective definitions and discussions, the complex behaviour and future of smart ci\-ties cannot be grasped in an overall definition. But, as defined in the paper issu\-ed by the European Commission (Mapping Smart Cities), \textit{``[a]t its core, the idea of smart cities is rooted in the creation and connection of human capital, social capital and information and Communication technology (ICT) infrastructure in order to generate greater and more sustainable economic development and a better quality of life''} \citep{EU3}.

\subsection{Components and characteristics of smart cities}
\label{subsec:smartcitycomponents}

As mentioned in the previous subsection, \cite{NAM} identify key components of smart cities and they re-categorize these components into three categories: technology, people, and institutions \cite[p. 286]{NAM}. Figure \ref{fig:smartcitycomponents} illustrates the key conceptual components under each category.
	
\cite{GIFFINGER1} identify important areas of activities that relates to the concept of smart city: \textit{``industry, education, participation, technical infrastructure, and various `soft factors' ''} \citep[p. 10]{GIFFINGER1}. They also identify six core characteristics of smart cities. Each of these characteristics are defined by a number of factors. Figure \ref{fig:smartcitycharacteristics} illustrates the six characteristics and their defining factors.

Figure \ref{fig:smartcitycharacteristics} was developed as a comparative tool for ranking European medium sized cities. With this tool, a city can be analysed from different perspectives and the area that needs more attention or further development can be identified \citep{GIFFINGER1}. This model has also been proposed by the European Commission \citep[p.26]{EU3} for the comparative study of the smart cities. \cite{EU3} also argue that the characteristics outlined in figure \ref{fig:smartcitycharacteristics} \textit{``point to the deployment of multi-dimensional strategies, which consist of many components and projects designed to be synergistic and mutually supportive''} \cite[p.27]{EU3}.

\begin{figure}[H]
  \centering
    \includegraphics[width=0.87\textwidth]{./Pictures/smartcitycharacteristics}
    \caption{\textit{Characteristics and factors of a smart city} \cite[p. 12]{GIFFINGER1}}
    \label{fig:smartcitycharacteristics}
\end{figure}

\noindent \cite{EU3} elaborate on the various smart city characteristics and we will briefly go through them:

\begin{description}

\item[Smart Economy] \hfill \\ Smart Economy refers to increased productivity and advanced manufacturing where innovation acts as a key pillar in the development of new business models and sustainable businesses that are supported by ICT. It is also concerned with the creation of smart clusters and ecosystems and with the economical success of the city on local and international markets.

\item[Smart People] \hfill \\ Smart People refers to the provision of equal access to education and training that can improve creativity and foster innovation encouraging people to participate in the development of the city. This will increase the social awareness and create social interaction. Additionally, it is about providing people the necessary skills to work in an ICT-enabled environment.

\item[Smart Governance] \hfill \\ Smart Governance exist when relevant public, private, and civil actors can participate in decision-making and planning so that the city can function efficiently and effectively as a single organisation. ICT-enabled governance can be an effective way to achieve this. Smart Governance also leads to transparency by opening data, using ICT, and involving relevant stakeholders in participatory decision-making.

\item[Smart Mobility] \hfill \\ Smart Mobility refers to sustainable, safe, and efficient transportation systems, which can be achieved by the support of ICT. Smart Mobility is also about creating awareness among people regarding the usage of one or more modes of transport (non-motorised options). ICT can play a vital role in providing real-time information, which can be accessed by the public in order to save time and money and decrease environmental impacts.

\item[Smart Environment] \hfill \\ Smart Environment refers to energy management: re-use and resource substitution,  sustainable urban planning, and reduction of pollution by developing waste management systems, better drainage systems, and water resource systems. Smart cities encourage  efficient usage of energy by promoting new technological innovation that result in less consumption and high efficiency.

\item[Smart Living] \hfill \\ Smart Living in concerned with enhancing the quality of life of the citizens, which can be the result of ICT-enabled life styles, behaviour, and consumption. Smart Living is also about providing people a safe living environment with enough hospitals, good quality housing, and accommodation. Finally, Smart Living is related to social cohesion and social capital.

\end{description}

\subsubsection{Relation between smart city components, characteristics, and initiatives}

Components are those factors by means of which characteristics of smart cities can be achieved. It can be any activity, resource, and method which is performed to achieve certain smart city goals. \cite{EU3} conceptualize components as the building blocks of smart city initiatives. Cohen argues components to be \textit{``key drivers of specific characteristics, based on the specific challenges and needs a city faces with respect to that characteristic''} \citep[p.29]{EU3}. Moreover, these components can be either vertically oriented, i.e. supporting a specific characteristic, or horizontally oriented, i.e. supporting several characteristics, or have an enabling nature \citep{EU3}. \bigskip

\noindent \cite{NAM} adopt a holistic approach to categorise different key components of a smart city into three categories: \textit{``technology (infrastructures of hardware and software), people (creativity, diversity and education), and institution (governance and policy)''} \citep[p. 286]{NAM}. The relationships between the components and the characteristics of smart cities are illustrated in figure \ref{fig:componentsandcharacteristics}.

\begin{figure}[H]
  \centering
    \includegraphics[width=0.9\textwidth]{./Pictures/relation_comp_char}
    \caption{\textit{Relationship between components and characteristics of Smart Cities.} \citep[p. 30]{EU3}}
    \label{fig:componentsandcharacteristics}
\end{figure}

\noindent The relationships between the components and the characteristics of a smart city can be both direct and indirect. Direct in the sense that a characteristic can describe the smart city initiative by depicting what it is about. It can also define the relevant components and their direct beneficiaries, while on the other hand, a characteristic can only act as a means for delivering components for reaching a specific goal. In this case, the initiative itself forms the reason for bringing people together to create new ways of collaboration \citep[p. 30]{EU3}. In general, smart city initiatives address problems of common interest within the city. \cite{EU3} describe the role of initiatives in a smart city by saying,

\begin{quote}

\textit{``[T]he success of a smart city depends on the depth and effectiveness of targeted improvement within each area or initiative and on the coherence or balance of the portfolio of initiatives across the city''} \citep[p. 20]{EU3}.

\end{quote}

\noindent In other words, the success of a smart city depends on the success of its initiatives. \cite{CHOURABI}  propose a comprehensive set of factors for understanding the concept of smart city initiatives. Based on these factors they also develop an integrative framework that can be used to assess the success factors of smart city initiatives. For this they set up eight clusters of factors and identify the challenges and strategies in each cluster \citep[p. 2291]{CHOURABI}. The eight clusters of factors are: 

\begin{itemize}

\item Management and Organization
\item Technology
\item Governance
\item Policy
\item People and Communities
\item The economy
\item Built infrastructure
\item The natural environment

\end{itemize}

\begin{figure}[H]
  \centering
    \includegraphics[width=0.8\textwidth]{./Pictures/initiativesframework}
    \caption{\textit{Smart City initiatives framework.} \citep[2294]{CHOURABI}}
    \label{fig:smartcityinitiativesframework}
\end{figure}

\noindent Figure \ref{fig:smartcityinitiativesframework} depicts the smart city initiatives framework where factors are highly interdependent. Furthermore, the inner factors of technology, organization, and policy have greater influence on the success of smart city initiatives in comparison to the outer factors, i.e. People, Communities, Economy, Governance, Natural environment, and Built infrastructure \citep[p. 2294]{CHOURABI}. Although different approaches are taken in establishing a framework for developing smart city initiatives, the complex nature of cities makes it challenging.

Some researchers still argue that a more detailed analyses of the management of smart city initiatives as well as descriptions of the underlying drivers are required to achieve the overall goal of smart city initiatives \citep[p. 138]{BAKICI}. The development of initiatives are influenced by different factors (size and demography, economic development, technology development, environmental policies, and other country-specific factors such as culture and political agendas) as different cities have different needs and contextual conditions \citep[pp. 25--30]{NEIROTTI}. Although the development of smart city initiatives is a complex matter, proactive engagement and collaboration between knowledge institutions and public and private organisations could lead towards the development of a smarter city \citep[pp. 146-147]{BAKICI}. \bigskip

\noindent For understanding the nature of such collaboration it make sense to look into the structure of a smart city and to identify the actors involved and their relationships. For this we will approach smart city from an ecosystem perspective. 

\subsection{The smart city as a complex ecosystem}
\label{subsec:smartcitycomplexecosystem}

Approaching smart city from an ecosystem perspective can be used to understand the different roles of smart city stakeholders and their relationships. \cite{SCHAFFERS2012} describes smart cities as a complex ecosystems \textit{`` where ensuring sustainable development and quality of life is an important concern''} \citep[p. 5]{SCHAFFERS2012}. These ecosystems consist smaller ecosystems, each handling their own area. These areas can be healthcare, education, media, energy efficiency, environment, as well as safety and public services \citep[p. 7]{SCHAFFERS2012}. These areas operate in an ad-hoc manner, but to realize the full potential smart city initiatives rely on cross-department (cross-area) connections and scale \citep[p. 7]{CISCO}. According to \cite{TOPPETA}, the city is a complex network of \textit{systems} where cultural, economical, social, and geographic constraints of each city are distinct. So to describe a smart city, one should take a holistic approach by understanding these networks of systems (or relations between areas). Looking a city from system perspective can potentially provide a holistic approach for understanding the relationships and interaction between its parts and hence create solutions that are integrative rather than mostly reductionist \citep[p. 92]{PETER}. Furthermore, \cite{PETER} argue that implementing a system approach may help to develop sustainable solutions. They also depict the strengths of having a systems and ecosystem perspective \citep[p. 93]{PETER}:

\begin{quote}
\begin{itemize}

\item \textit{By focusing on relationships and processes, we gain better understanding of emergent properties and the complexity of living systems.}

\item \textit{Context is recognized as important, as parts cannot be studied in isolation from the other parts of the system and from the wider systems within which they are embedded. Ecosystems are nested, as we are nested within ecosystems- systems within systems, wholes within wholes.}

\end{itemize}
\end{quote}

\noindent The above statement depicts the necessity of understanding a smart city as a ecosystem, which helps to understand the relationships between different systems and also helps to explore new relations between these systems and by that form a new holistically integrated system. Furthermore, a city ecosystem consists of different stakeholders: city administrators, public and private bodies, citizens, and other active groups such as standardization bodies \citep[p. 9]{HITACHI}. These stakeholders are motivated by their own interests, which is a main obstacle for \textit{maturing} the smart city (as described in section \ref{sec:researchbackgound}) and having a collective approach in developing a smart city initiative. It seems critical to identify a way to mature the smart city actors for adopting collective approach in developing sustainable and holistic smart city initiatives. 

\subsubsection{Key Success factors in smart city development}

On the basis of the reviewed literature it can be argued that smart city development is a never ending process. As the population increases the city needs to be more and more sustainable, efficient (regarding the use of resources), and robust (e.g. technology, economy). \textit{IDC Government Insights} defines five best practice areas with the success factors within each area \citep[p. 8]{CISCO}. These five best practices have been categorised under two categories: non-technology and technology. Although \cite{CISCO} is reviewing smart city development from technological aspects, he explains how new technological development and innovation can lead to economic development, sustainability, and higher quality of life. Figure \ref{fig:smartcitykeysuccessfactors} illustrates the best practices within two categories and their key success factors.

\begin{figure}[H]
  \centering
    \includegraphics[width=1\textwidth]{./Pictures/keysuccessfactor}
    \caption{\textit{Smart City Key Success Factors} \citep[p. 8]{IDC}}
    \label{fig:smartcitykeysuccessfactors}
\end{figure}

\noindent These success factors must be addressed in mutual coordination with each other to effectively accelerate smart city development \citep[p. 8]{CISCO}. \textit{Use} and \textit{access} of data is seen as some of the key factors driving the smart city development. It also explains how embracing open data can create government transparency and potentially increase citizen involvement for solving complex issues within a city. \cite{CISCO} also provides an example of how different cities, like Barcelona and Seoul, have implemented these success factors and articulated a far-reaching vision. Furthermore, the paper also emphasizes that different government structures, like municipalities, can use ICT as the basis for development of better services, improved stakeholder collaboration, and greater efficiency and by that enable sustainable development of the city \citep[p. 17]{CISCO}.

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